Pakistan and the European Union (EU) solidified their shared commitment to sustainable and inclusive economic development on Friday by signing a €20 million grant agreement. This agreement officially launches the “Better Governance and Business Environment” initiative.
The agreement was formally signed by Dr. Riina Kionka, the EU Ambassador to Pakistan, and Dr. Kazim Niaz, Secretary of the Economic Affairs Division. Funded under the EU’s Multiannual Indicative Programme 2021-2027, the initiative aims to boost the competitiveness of Pakistan’s private sector, with a particular focus on small and medium-sized enterprises (SMEs), including those led by women or offering benefits to women.
The program is set to strengthen legislation relevant to SMEs, support the green transition of firms geared towards export, facilitate targeted green investments, and foster public-private dialogue. This aligns seamlessly with the EU’s Global Gateway strategy, GSP+ commitments, and the EU Green Deal, promoting intelligent, sustainable investment and resilient value chains.
Dr. Niaz expressed his appreciation for the EU’s ongoing support and partnership. He emphasized the timely nature of this intervention, highlighting its strong coherence with Uraan Pakistan’s objectives for private sector growth and institutional reform aimed at attracting responsible investment.
Ambassador Dr. Kionka stated, “This agreement underscores the EU’s dedication to assisting Pakistan in building a resilient, inclusive, and competitive economy. We are investing in green innovation, women-led businesses, and public-private partnerships to ensure a more sustainable future for all Pakistanis.”
The EU’s development cooperation with Pakistan continues to focus on climate resilience, governance, human rights, and sustainable economic progress. This new initiative marks yet another stride forward in advancing these shared priorities.
